it is monday, july 22nd, 2024 and "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. as we do every morning, we will start with the look at the u.s. equity fultures. it is not what most of the global is paying attention to. s&p futures up 26. dow futures up 51. this comes after the nasdaq had the worst week since april. it was a down week for technology since the biggest global meltdown in i.t. on friday. you will see the treasury yields

this morning. taking a look. 4.22 is the ten-year. the two-year is at 4.52. the big story is looking at politics this morning and seeing what will happen. bitcoin is up slightly. $67,000. guys, it is really politics which has captured the globe's attention. let's get to it after president biden drops out of the race and endorses kamala harris. eamon javers has more with us. working overtime all weekend. >> reporter: good morning, andrew. we are told that kamala harris spent ten hours yesterday working the phones at the vice president mansion here in d.c. she was with friends and family and making calls to more than 100 officials as she tries to gear up momentum for a president at campaign on very, very short notice now that joe biden has dropped out of the race. kamala harris, you have to say

at this point, absolutely the frontrunner, but has not clinched the democratic nomination. that process will be official, we're told, and will start on wednesday of this week with the meeting at the dnc which will be televised and available on youtube for everybody to watch. fascinating behind the scenes last night and one indication that the phone calls were paying dividends was the fundraising success that kamala harris had overnight. the campaign releasing this mor information. americans have given $49.6 million in grassroots donations to her campaign. to put that number in perspective, andrew, the trump campaign raised $112 million, i believe n the month of june. kamala harris coming, you know, more than one-third of that, if my math is right, in just one night indicates some pent-up demand among democrats to start

pumping money into this campaign. i think you can imagine the big donors will start to do that after withholding money from the biden campaign in protest of biden's decision to stay in the race. i think all of that money will shake loose and head toward kamala harris unless another candidate gets into the race. it is not clear at this hour whether or not that will happen. some big feet in big politics have not endorsed kamala harris. no endorsement from obama or pelosi. the big names have not moved behind her definitively. that leaves room open for somebody who might want to challenge her. the question is does anybody in the party want to try to do that. andrew? >> there is speculation that manch manchin might want to get into the race. some other democratic

candidates. there is the secondary question of who do you think she may choose for her vice president and how impactful that could ultimately be. >> reporter: look, one interesting dynamic to watch out for is all of the mid to lower tier mentioned as possible candidates who endorsed kamala harris in the first hours yesterday, including josh shapiro of pennsylvania yesterday, moving to endorse kamala harris yesterday. that may be the beginning of the vice presidential campaign by shapiro. pete buttigieg also moving to endorse kamala harris. >> i saw mark kelly on that list.

>> on the predicted list. 84% for kamala harris. michelle -- michelle obama, 5 cents. gavin newsom at 5 cents. not that the betting sites mean anything. chuck schumer. nothing there. >> nothing from nancy pelosi. >> the big feet have yet to drop the shoes. >> they are saying open convention. i don't know. if anybody comes, pelosi, schumer, barack obama all come to endorse her, is it really an open convention? someone would have to emerge. >> somebody has to come out today, right? i think if kamala harris goes more than 24 hours into this without opposition, then she has it locked up.

the democrats might do a virtual convention before the the official convention to wrap up the voting and make the convention this big marketing push that they traditionally have become in american politicians with no un uncertainties on the floor. they may want to do this early. >> they may want do this with biden and that is the reason that went into the decision. >> eamon, can you go through two pieces of this? the money piece. money that went to biden. $95 million goes to her. that money, you believe, unavailable to others. there is a big question mark that republicans may go to court even over the fact that she could get the money. there is the idea that if she were the candidate, maybe the money could move also where and people sue each other. how relevant is that pot of

money relative to the dollar pot in the pac world? >> the pot of money is important. money helps the campaign do all of the things the campaigns do. that said, kamala harris has control of that money as a candidate on that ticket. they refiled the paper work with the federal election commission. it is now harris for president, not biden for president. kamala harris controls that money for now. if she was to be defeated for the nomination and some other candidate x becomes the democratic nominee, there is the possibility that kamala harris could then donate that money to the democratic national committee. she could move the money to a super pac that would operate independently of the president, but runs in favor of the presidential candidate. there are ways to deploy that money for somebody else. kamala harris has to be, a, defeated and, b, agree to do that.

it is tricky. >> it is the lame duckery of president biden. jd vance says if he can't run, he shouldn't exercise the duties of the presidency. whatever we do, we're going to be in this weird sort of limbo until we decide and i don't know whether other countries. there is a lot going on in the world and it has happened before we get tested. somebody will point out maybe foreign policy already is sort of run by committee and that maybe is the way it should be between now and then. others say what's better? president biden with the committee or an untested vice president kamala harris as president if biden were to leave? a lot of it is fraught with uncertainty and risk in a dangerous world. >> the united states has had lame duck presidents before. take that off the table. >> not to this extent though. this year -- the 25th amendment.

>> in this case, the idea of biden resigning the presidency and hand ing the presidency ove to kamala harris early -- people are signaling that is not on the table. i will say it is a little unusual we didn't hear from joe biden jyesterday on camera. we saw the letter posted to social media. we have pre-written statement. nobody coming out on camera yesterday. biden not addressing the nation. back in 1968, the nation was addressed and the famous line. >> i saw that. >> i will not seek the nomination. >> coming in with a heavy heart. >> we did not see that from joe biden. that is something that is raising eyebrows and people would like to see joe biden. it is not clear when we will see him and what he will say. they said later this week some

time. it is a little bit vague when we might see joe biden. >> eamon, can you help us with the ohio piece and october ballot and timing around that and the permutations that could take place? this goes to the fundamental issue of who is on the ballot and the timing of that? >> there was some concern by the democratic national econcommitt that they had to move early before the convention which is late this year in august. it is not really clear that concern was driven by biden loyalists whos who were trying t him in there or legal concern. we have to take a look at that to see if there is any problem here with kamala harris getting on the ballot in ohio or anywhere else. i would imagine there would be a plu flurry of lawsuits from republicans in states across the

country challenging this. why not? i think there will be some effort by republicans to challenge the money piece as well. again, because why not? while those lawsuits are proceeding, kamala harris and or candidate x will be spending that money aggressively through the fall. depending on the timeline of the legal calendar, it may not matter because they will spend the money before the lawsuits are resolved. >> there other states, too, not just ohio. if you change the top of the ticket like nevada, they were questioning this. there will be several lawsuits. >> okay. eamon javers, thank you for helping us through all of this this morning. i'm sure we will talk to you a lot more in the coming hours and days. when we come back, we will get you ready for the trading day head with the earnings and the several key earnings points on the agenda. we have the squawk planner coming up next. as we head to break, let's

look at the chinese yuan. the central bank cutting a tee policy rate overnight. it reduced the seven-day repo rate from 1.3% to 1.7%. it comes just days after china's second quarter gdp came in lower than expected sparking concerns of the uneven recovery there. "squawk box" will be right back. (♪♪) car, this isn't the way home. that's right james, it isn't.

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on this week's squawk planner, earnings season heating up. today, we hear from verizon, that comes a little later this hour. tomorrow, tesla, alphabet and visa will be reporting. on thursday, we got honeywell, southwest airlines, american airlines and hasbro. on friday, 3m and bristol myers squib. we have several key data points. on thursday, we have jobless claims and durable goods and first look gdp for the second quarter. on friday, the fed inflation gauge and core pce ahead of the july meeting next week. joining us is stephanie link, it's portfolio manager at hightower adviser. she is also a cnbc contributor.

steph, you said on friday when you were talking to our staff, that you would hold off on any of your macro thoughts because you were the not sure what would happen on the political front. you were right. what do you think now? >> it's a crazy time. i think the market certainly could be volatile for the next couple of months for obvious reasons. i have always said it is the mix of congress that is most important versus who is the president. before the biden news, becky, it did look like there could be a real possibly the republicans would sweep both houses as well as the presidency. so, there's a lot of time head. we've got four months to go. it does still look like whatever happens with congress, it looks like trump will likely be the president. a lot of things can happen between now and then. i think you just want to take a

step back and you mentioned we have a bunch of earnings this week. we have 30% of the s&p 500 in terms of companies reporting. we will hear the first line of thinking from these companies. that's the good news, right? we will be able to understand the fundamentals. that's the most important. you can kind of, in a portfolio, you can shift toward a trump portfolio or harris or whoever it may be. i think that is risky. i want to focus on good companies delivering on good earnings and solid guidance ahead. i think we will hear from a lot of companies and a lot to choose from. >> let's talk about one of the stocks that you owned ahead of time last week. dhi. dr horton came in with numbers better than expected. what does it tell us about the housing sector at large? >> i do think the housing theme

is a decade-long theme. i have been saying this for quite some time. a lot of this is because we have a shortage of housing and houses. we have 5 million homes short in this country. we have 5 million millennials that are first-time buyers. if you talk to any of these companies and i talk to dr horton quite a bit. they will tell you they have been under producing for the last 14 years. they would rather buyback their stock than actually buy land. the good news iscosts are comin. that was a big theme for them as well as solid demand. i like dr horton because they're in the southeast and they have 57% of their order book is first-time buyers. that's one i like. by the way, it is trading 11 times forward estimate. it has had a nice run and nice recovery, but i still think you can buy it here. >> you also like home depot in this space, broadly speaking.

>> i do. i like it. it has done nothing in the last year, year and a half. they were a beneficiary of covid when everyone was buying stuff for their homes and they have that hangover. the last five quarters, they missed store sales which is why the stock hasn't done well. you have easy comparisons. to your point, if you believe in the housing theme, you have to like something like home depot. it is trading not cheap at 21 times, but trading below the historical average of 25 or 26 times. i like the risk-reward and low expec expectations. >> stoeph, let's talk about another thing. you said former president trump is going to be elected this time around. we had many strategists saying many sectors would do well under a trump administration. oil is not one of them.

drill, baby, drill, means prices come down. you like slumberege. can you tell us why? >> i like it with drill, baby, drill, but it is growth in the economy overall. the sector is left for dead. the slb is trading at 13 times. it is the number one player in oilfield services. they just reported earnings on friday. it was very good. in fact, they have beaten expectations for the last four consecutive years. yet, the stock really hasn't done that much as well. i think there is real value here. on friday last week, they reported and beat three of the four divisions. you own slb for their international exposure at 79% of ebitda. that part of the business grew

nicely. that digital franchise, all about technology and a.i., their digital technology did well and margins expanded in the digital segment. digital is going to be a $3 billion to $4 billion business for the next few years. that carries higher margins. that bodes well for the operating leverage potential. 13 times of the new one player is pretty interesting >> slb is the stock sysmbol. did they get tired of people calling them slum burger? >> i theyink so. >> thank you, steph. coming up, the fallout from friday's computer outage. what did you do? >> that blue screen of death you are looking at? your screen was the only one

working. >> really? that's interesting. did you trip and pull out a plug in the wall? >> i had a mac. i was fine. >> people are still -- i hear about people in airports for three days. >> yeah. it was -- the crazy thing is, you woke up and you thought it was the big one. we thought we were hit by a cyber attack. this was friendly fire. we shot ourselves in the foot by the cybersecurity company that was supposed to prevent all this. >> we're going to talk about one of the hardest hit companies next. later, reaction from the corporate world after president biden dropped out of the presidential race. "squawk box" will be right back.

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now to some of the fallout of the friday's global computer outage caused by crowdstrike. delta airlines struggled to recover over the weekend cancelling a third of the schedule yesterday. it's already canceled more than 10% the of the mainline operations schedule for today. that's more cancellations than any other u.s. airlines. c, ceo ed bastian offered customers frequent flyer miles. pete buttigieg said the department expects delta to provide prompt refunds for people who called off the trips. he said they should provide timely reimbursements for customers affected by the delays and cancellation. shares of ryanair are

falling shortstop sharply after a 46% drop in quarterly profits and fares would be low near the summer months. also said weaker than expected fares played a role. passenger traffic increased in the quarter to 50.5 million. the u.s. court ruling in ryanair's favor. booking.com violated the computer fraud and abuse act by accessing the web site without its permission. the ruling would help unauthorized screen scraping by booking sites. it's been an issue across the board. when we come back, axios co-founder mike allen will join us to talk about the big shakeup in the presidential race and what it means and what comes next. later, verizon is set to report. we will bring you those numbers

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good morning. welcome back to "squawk box"

here on cnbc. we are live in the nasdaq market site in times asquare. the futures on this monday after the big moves in the political word. the s&p is up 28 points. joe. president biden is stepping aside of the presidential nominee and endorsing kamala harris. we have mike allen, axios co-founder. >> good morning. >> do you expect today for former president obama or former speaker schumer or hakeem jeffries to announce today or if they don't, do you expect somebody at the open convention? >> no, i'm not. they are expecting the nominee to be vice president harris.

she plunged in yesterday and spent ten hour on the phone with civil rights leaders and business leaders and congressional leaders making calls to solidify her position. those leaders have held back a little bit because the democratic party may want to have a mini process like allow the possibility for other voices. they just don't want people to be able to say the democratic party is being undemocratic. joe, make no mistake, vice president harris has epic advantages here, including her command of the campaign structure. raised $50 million, 5-0 overnight. the dnc, the white house, her historic status are all formidable advantages. >> donald trump himself, just

any candidate probably gets "x" number of votes just from not be joe biden at this point. mike, it's probably fair to say some rehab probably needs to be performed somehow on the vice president given just the overall perception for the past couple of years. whether it is the border or some of the, i don't know, some of the quotes or some of the moments we've seen. if you are anti-trump, it will not matter at all. she is also 19 years younger. she can also, you know, focus on women's health and abortion, et cetera. >> 100%. >> but -- go ahead. >> joe, that's a great point. democrats are going to say you want to talk age and fitness? bring it on. you're right. she's 59.

the president is 78. totally correct. reproductive rights. a central issue for so many people. she suddenly is able to talk about that in a central way. potential game changer. joe, a huge frame you will hear from democrats is they will talk about the prosecutor. she is the former d.a. of san francisco of my home state of california. the prosecutor versus the convicted felon. you will hear a lot of that. joe, you are right. democrats will say most people don't know her. she has a golden moment here to introduce herself and find herself and talk about those issues. republicans say this was a sinking ship. it doesn't matter who you put at the top of it. repub republicans' three-point plan is

everything we were going to say about biden, she owns that. plus, we're going to say what did she know and when did she know it? was she complicit in not re revealing the president's condition and they will say she was given the responsibility for the border. how did that turn out? joe, all of that is why jim and i at the column of axios, this unscertainty we have not seen since the 1960s. >> they will talk about not getting to iowa. not a great presidential candidate. they will also talk about that she's further left. much further left than joe biden. although, he seemed to go along with the party pretty much and that wing.

they'll say or they'll brand her as an ultra progressive. >> no question. what republicans were saying to me is we wanted to run against liberal leftists. now it's easier. you have somebody who is literally from california, the harris campaign now, officially the harris for president campaign, will push back. she will be able to talk confidently about how she was actually a tough prosecutor. joe, you will appreciate the nuance for this. it was hard for her to discuss when she was running afor the democratic nomination. >> marijuana and people in jail and when she was asked if she smoked marijuana. she did. >> mike, we heard from a lot of folks over the last six months who desperately wanted president biden to get out of the race.

you heard from bill ackmans of the world before they endorsed former president trump. they were hoping to get biden out of the race in hopes someone else would come in in his play. the question is do any of those people who were pushing for that and ultimately landed in the trump camp, switch again? >> did you see what ackman tweeted? >> i did. he's not coming back. that's why i asked the question, mike. >> hope springs eternal. >> there's been very little sign of that out of the box and i can tell you that president biden, who finally yielded to what those people had been saying for months and months. we're told it was finally the data that there is no path. over the past three weeks since the debate, they tried everything. nobody could give him data

points that showed him winning. this is where republicans feel like they have huge momentum after the convention. people are just based on human nature and people are unlikely to switch back. they came out of this incredibly strong convention. now democrats, who have just four weeks until chicago. 100-ish days until the election. that is a short time to try to reboot the campaign and introduce a candidate to much of america and get all of the wings of the party flapping in one direction. that is all a lot. >> mike, how important, therefore, is the presidential nominee? >> that's what i was going to ask? they're never that important, right? >> maybe in this case, it would be. >> in this case, they are. probably more important than ever to say we do have someone -- it's very strange because you like to pick someone who you could see taking over

and they didn't do it last time. you could pick someone taking over as president or even not being -- i don't know. it's bad to talk about it that way because you're giving the vice president short shift. why does she need a great vice president? you don't talk about it that way with other one. you immediately get the sexist comments and everything else, mike. >> i think a different spin on that and the usual approach of the vice president is the physicians' creed of do no harm. in this case, you will see somebody to broaden her appeal. democrats and harris have to win pennsylvania, michigan and wisconsin. the ticket currently down in all of those states. who can help them there? look for a moderate democrat. she has the history.

i don't think you'll have two history makers on this ticket. this is a place that data will come into play like who can -- >> gretchen whitmer. michigan would be good. >> you are saying you don't see two history makers. you are saying you don't see two women on the ticket? >> i can tell you democrats are reluctant to do that. that conversation has not been had and has not been run. governor whitmer is absolutely popular across the party. instantly a frontrunner for the next time the job is open. pennsylvania, michigan, i wisconsin, who will play there? they will look for that because that is ultimately what sealed president biden's decision and the campaign knows this is the ticket to win and after watching

president trump in his speech, he is beatable. >> josh shapiro. >> if you are talking history makers, josh shapiro is jewish. pete buttigieg is history making. are you knocking out all of those demographics? >> i'm not knocking out any prediction because i doubt that decision has been made. that will would be one consideration. what would be the broadest appeal to the most americans? >> what do you think of the names like you heard mccraven and mark kelly thrown around. does that change the dynamic? >> admiral kelly would be a creative pick. very popular with business. mark kelly of arizona. someone who has gotten a lot of conversation in the last couple days. those are the people who will

speak to a broad swath of america. somebody who is additive is somebody i would look for. >> thanks, mike. >> thank you. >> let us know what you hear. i think -- i don't know. i think those other people have to get on board. it is glaring. it is not -- >> what do you think the chances of manchin jumps? >> every time we hear he might, he never does. >> he is not jumping into the general election. he is jumping into the democratic delegates. the democratic delegates may not be friendly to somebody who left the party. >> briefly made me think. i like him. he may know that. >> we haven't talked about the other sorkin's recommendation. aaron sorkin's recommendation. mitt romney. >> no, no, no. been there, done that.

>> mitt romney. >> you wouldn't vote for him ever. he didn't pay taxes his than tire life. >> you don't think? >> he has a file full of women. he has a binder full of women. no. go away. you were a horrible candidate. manchin. manchin. >> he still has to go through the dnc. >> that's the problem. >> this is -- >> manchin-hogan? bring him back. would you? well, you're just a watcher. >> i'm just watching. >> you want me to say things. you're just watching. >> correct. how about i say something. berkshire is trimming its stake in bank of america. that stock right now is down 1.5%. reminder for you, you can get the best of "squawk box" in our podcast. follow squawk pod on your

favorite podcast app and listen anytime. we'll be right back.

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berkshire hath aaway sellin bank of america stock. it is the first time they trimmed that stake since 2019. berkshire still holds the stock. it was up 7% or more just in the last month. it hit a 52-week high after its quarterly results lack last week. this is interesting because berkshire owned more than 10%. they have to file within three days of any sales they do in the ownership. you are getting the early look at this.

this comes after berkshire long cut wells fargo and jpmorgan and goldman sachs and bny. all of those stakes in other banks it had cut to this point. first time we have seen a cut to bank of america in five years. when we come back, elon musk waying igngn on the shakeup in the democratic race. "squawk box" is coming back after this.

coming up we're going to talk political strategy and the impact on the markets after the campaign shake-up yesterday: that is next. still ahead, verizon is set to report this morning. we will bring you the numbers

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welcome back to "squawk box." elon musk wasting no time to share his thoughts on president biden's exit from the 2024 race yesterday, and steve kovach joins us with more on that. good morning. >> hey, good morning, yeah, he wasted no time and was tweeting through it all day yesterday weighing in on biden dropping out of the presidential race. by the way, he formally endorsed former president trump after the assassination attempt a little over a week ago and just before that event, "the wall street journal" reported musk is donating as much as $45 million a month to a pac backing trump. musk has denied and confirmed he's making those donations so it's really up to anyone's guess how much he's actually donating.

yesterday he's been tweeting like any other pro-trump supporter claiming many of his smartest friends are switching over to team trump. globing onto the theory that biden stepping down was a sort of long con by democratic party insiders to get biden to step down and subvert the will of primary voters and, by the way, he implied alex soros and george soros would be pulling the puppet strings after he endorsed vice president kamala harris for the democratic nomination. and don't have to point out the irony of what political donations do get billionaires like musk and soros. look at musk's own money and action. over the weekend at a rally in michigan, trump praised musk who he once spent a lot of digital ink and even softened his rhetoric around electric vehicle. though he did add the caveat he

doesn't want a mandate or forced purchase of evs. we are seeing a softening of trump around musk. >> he was always -- >> when i interviewed him in davos, it was a classic quote. he said he's -- literally. >> good at rockets. >> good at rockets. >> david faber oneself said it, when you watch a rocket take off, there's nobody who doesn't like a rocket -- >> space is awesome. >> we had these blogs. >> i think it's as cool to watch take off as to land. >> now they do that. trump mentioned that too, that he landed a rocket with -- yeah. >> i think the question becomes, you know, if there is a trump presidency next year, what does the ev situation look like. also, the tariffs. i keep thinking back to during trump's first term and the situation with apple trying to battle those tariffs in china. they brought trump down to that plant in austin and showed him around. look, we're making some stuff in the united states and, boom, they got a tiff. >> elon musk has said repeatedly he wants tariffs. >> he wants tariffs, he doesn't

want the subsidies. >> i don't know how true that is. >> remarkably better position than the other -- than the other automobile makers. >> 100%, and by the way, look what's going on in the eu with the tariffs. that's annoying him as well. chinese made evs going to the eu, which is where a lot of that is. >> steve kovach, thank you, sir. let's talk more about some of the key policy and economic issues on the campaign trail. sarah beeianchi is joining us, public strategy at evercore. is there any daylight between you think the policies of president biden and the policies that vice president harris would employ if she was president? >> i don't think there are very many significant power differences. they've governed together for a number of years now.

i think vice president harris would be wise to come out with a couple of differentiating issues, perhaps on issues that are on the minds of voters such as immigration, potentially other things relating to inflation, but i think in general that will be on margin, and she will be running on the same platform that we saw president biden running on. and i think governing quite similarly as well. >> you know, we keep talking about big tech. we just -- we're talking about elon musk and all of this. so much of silicon valley -- a vocal piece of silicon valley has come out in support of former president trump. harris, of course, from california. she does have her backers including people like sheryl sandberg, at the same time she was castigating companies like facebook. so i'm curious how you think

that plays out. >> well, it's really interesting because both president trump and president biden over time have taken issues with various tech companies including meta, including tiktok. neither one of them have been sort of across the board fans, and yet, as you point out, they do have some prominent backers on both sides. interestingly for musk, as you all have mentioned, wants to get rid of some of the parts of the inflation reduction acts. a lot of complexity here, i think, and by and large, i think both candidates will ultimately be more responsive to the voters and some of the populist trends they're seeing on the campaign trail than they ultimately will for these backers. >> do you think that to the extent that she would have some new policies or introduce things in a different way than president biden, that they would be considered more progressive, more centrist at this point, and how key is that in terms of

capturing the nomination? >> well, it seems like she's quite on track for the nomination at this point. she got so much support yesterday. some of the other tier one candidates that potentially could have jumped in have instead endorsed her. so i'm not sure she needs to worry about that as well. she has a lot of built-in advantages with the delegates who will be making this choice. many of them have seen her throughout the country, so i think she'd be wise, in fact, to turn a bit to the center on a couple of issues like immigration where they are going to be coming after her quite hard. that is my expectation, but we'll have to see what she does -- >> that's where i was going with this, if you move to the center, does that ultimately help her in terms of broadening the base or does she need to move more, even more to the left in terms of

trying to get at least a certain group excited about her? >> well, we saw that in the last couple weeks with president biden, talking about the supreme court, talking about so many other issues, but quite frankly, i think for vice president harris, the base is going to be energized by this choice. she's new for them. she's a woman of color, young, energetic. i think the shake-up alone will energize the base, and of course trump himself energizes the democratic base. so my guess is she would be -- and i certainly think she would be wise to make her moves to the center. i think this fact alone will energize democratic voters and her job is to get those few in the middle. >> sarah, i want to thank you for your perspective this morning, appreciate it. >> you got it, thanks. it is just after 7:00 a.m. right now on the east coast. you're watching "squawk box." i'm andrew ross sorkin along

with joe kernen and becky quick. we've got a lot going on on this monday morning. let's show you where u.s. equity futures stand right now after president biden stepping down from this presidential race. we're looking at the dow up about 63 points, the nasdaq up about 177 points, the s&p 500 up. >> verizon earnings came in at 1.15 a share on an adjusted basis. that's in line with what the street was expecting. revenue was just below expectations. the company did see retail, postpaid ads of 340,000. verizon ended with 11.5 million total broadband subscribers up 17% from last year. joining us right now is verizon's ceo and chairman, hans vestberg. thank you for coming in today. >> good morning, how are we doing today? >> good. >> you're busy. i can see that. >> you are too. let's talk a little bit about the results. so earnings came in in line with

expectations. the revenue was just below. i think the street's reaction is a little lower at the moment. what happened in the quarter? >> no, i think we had a really good quarter. it was our fourth consecutive quarter where we had improvements on the beat. cash flow as well as the wireless revenue. the overall revenue is a little bit down, but that's because the promotion and the upgrades on phones are still down so what we are measuring is the service revenue, which is the most important, and that is growing 3.5%. so that was important. the other was, of course, important that we added 148,000 new wireless -- and almost 400,000 broadband customers, again in this quarter. we are doing great. we refreshed our brand. we came out with new products in the quarter. we're looking forward to the second half. definitely our products are resonating with the market really good. i'm pleased with the progress the team is doing and what we've done the last 12 months.

>> the upgrades on phones being down with consumers. if you ask people about that, they will say because apple hasn't innovated quite as quickly. there has been some delay with that. they now have this whole new ai plan and there are some analysts on the street excited about that. what are your expectations? >> our customer now holds a phone way over 36 months, which is very long: we remember when we changed the phone every year. that was exciting times. i think there are two things. one is of course the resilience and the quality of the phones has improved quite dramatically, so people can keep them much longer. >> much to your disappointment, i'm sure. >> no, i think for us let's see who are doing the promotions for and what type of promotions are doing with segments, so i think as the market is saturating in wireless, you work much more with segmentation and see that you have the right offering for the right customers. that's why we spend all the way from the prepaid brands all the way from total wireless, all the

way up to the most advanced plans so we can meet the whole market, and then you have different promotions . >> promotions that you have to offer or promotion in conjunction with the hand set makers. >> we do it together with the handset makers, depending on what cycle they have, and different venn dors at differen times of the year. we're all different. some are using android, others are use ios, of course. it's a different cohort of customers we're addressing. >> what do you see from consumers at this point? are they willing to spend, or are they looking for bargains? >> interesting for us. delinquency is basically on the same level as pre-covid. then i think what is important for us, we have a very high quality customer base that is very resilient and very strong. secondly -- resonating with the market, and i don't think that anybody can live without

wireless and broadband. they have increased in importance in our society because they cannot work, they cannot live, they cannot play if you don't have a mobile phone and broadband. so maybe we're a little bit set aside from other industries that might have some softer -- in our case we feel really good about offerings. we start with something called my plan. one year ago more than 30% of all our customers -- and we are a big custom base has now my plan, which is sort of optionality, flexibility. >> can skii ask you about the growth of fixed line wireless. the pricing of it, which is to say that it takes an enormous amount of wireless connectivity to make it work. you make more money on a telephone plan typically than you would on the fixed line wireless plan. i wonder -- >> that was your assumption i guess. >> you tell me because i think there's a view in the telecom

world that you can grow, grow, grow, grow, grow, but there's going to come a point where given just how much broadband spectrum you have, that if you have to choose between selling a wireless plan and selling a fixed line wireless plan, meaning a telephone plan, versus that you actually much prefer to sell this. >> there's a couple of things we need to think about there. wireless sort of data spread over frequencies is something i cannot say. usually fixed wireless access broadband subscribers are using the network in the evening. if you're using your phone, you're doing it through the -- utility on my network constant on the network. so for us it's more about seeing that we have good usage of the network 24/7, and we build the network once and we have multiple different services and products on top of it. that gives us the best return on investment in the industry. so what you see right now is

fixed wireless access is such a unique product, so difficult. self-install. it takes five minutes to install fixed wireless access. at the same time, fios, which is undisputably the best product in the market, we have fiber on top of it. little bit different group, but they use the network equally as much. >> that makes me think it's almost like the airlines where you can only be as smart as your dumbest competitor depending on how low they will cut prices. there has to be somebody not undercutting you. >> i think we have so much value. the product's so important. i see it getting more value to our customers. and if you see the last four quarters how we increased our rpo and all of that, it seems we can see our customers are getting more value. we have our perk system, so we have the ten largest streaming services in the country exclusive on us.

you just build it up in a vertical way in order to see that the customer is staying with you, but also getting more value. >> am i wrong in the assumption, the assumption that you make more money on a phone plan -- >> that's not how you see it. you build the network once, and the streams are the same, so the utility on the network that is important, and that's giving you the best deal. >> that's a longer conversation. >> this is complicated. >> right. >> because if you build a network once with one investment -- >> i get it, but i'm saying at some point if you had to choose gun to the head between this versus the other, i think from a margin perspective you're doing better on this. >> yeah, it might be, but important is that over time you're adding also more capacity constantly and more feature. getting into 5g advanced right now is way better. just imagine we had 3g and doing fixed wireless access. i could have very few customers. the innovation in our industry

how we use data and transport data is more efficient every day. >> hans, we want to thank you for coming in today. >> thank you. >> hans vestberg. coming up, reaction to yesterday's campaign shake-up, president biden dropping out of the race. we're going to talk to former senator heidi heitkamp and former congressman jeb he hensarling and esther george will be our guest. we're coming right back.

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giant nvidia, which is up ro roughly 1.5% so far. it's getting some help from teams over at loop capital markets and piper sandler. each are upping their target prices on the world's most valuable semiconductor companiment loop goes up to 175 bucks. piper to 140 bucks. it was 120. they reiterate their buy equivalent ratings. they're citing optimism into quarterly earnings and higher expectations for nvidia's next gen ai focused chips. citigroup also launched a positive catalyst watch in nvidia heading into earnings. getting some pail wind there. st shares of apple up, helped along by wells fargo upping its target price on the iphone maker and app services giant. goes up to $275. it was 225. they keep the overweight rating. they're citing amongst other things expectations for better results from iphone sales heading into earnings as well as expectations for more growth,

driven by its upcoming product upgrade cycles and ai product offerings. those shares up by about a percent. crowd strike trying to find some sort of footing in the wake of that massive global i.t. outage. shares down 4%. guggenheim is downgrading toe a neutral from buy. they're withdrawing their target price citing fallout from the outage. morgan stanley says it's still a top pick, but they're cutting their target price to 396 from $422. goldman sachs is keeping their buy rating. for more on those calls and other top analyst calls of the day, subscribers can head to cnbc.com/pro and get some more color and detail. dom, thank you. we'll see what happens with crowdstrike today. after weeks of party and donor pressure following his disastrous debate performance, president biden saying he will not seek re-election ending his

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♪ coming up, a big week for aerospace and defense companies. we're going to hear from one of lockheed martin's top executives, and then we're going to talk political donations in the presidential race. "squawk box" will be right back.

welcome back to "squawk box," president biden dropping out of the race and endorsing vice president kamala harris, less than a month before the democratic convention. for more on all of this, the next moves for both parties, i want to bring in our panel, former democratic u.s. senator heidi heitkamp, director of the university of chicago's institute of politics and a cnbc contributor and former republican. representative, jeb hensarling, i want to welcome both of you to the broadcast. i'm curious, senator, heitkamp, you heard the news midday yesterday, i don't know where you were. you probably will remember it for the rest of your life.

what was your initial reaction, and what do you think happens next? >> you know, i think it was surprising for me because i actually anticipated that he would eventually get out. the poll numbers were just too bad. but i think i reacted the way most democrats who appreciate the work that he's done and know his heart and know him well with sadness. i mean, that this had to happen. but then i think there was immediately a sense of relief that we were turning the page, that the opportunity to run a good campaign, a winning campaign was back in play, and you saw that reaction. $60 million raising money almost immediately is pretty amazing. >> what does it mean, though, real quick before i get to jeb, what does it mean that president obama, schumer, pelosi have not endorsed kamala harris yet? >> i don't think it means anything. i think you saw aoc's video saying basically this was party bosses trying to take over.

i think it's smart for those people who were probably most identified with this effort to ask the president to step aside, not to endorse the candidate, not to be the people picking the next standard bearer and bringing it to a broader political establishment. so i think that's what it means. i don't think it's any knocsarl vice president harris has a good chance? >> when you ask how it changes the race. there wasn't a race, and now there is a race. i think that, you know, the vice president is going to have a bunch of positives and a bunch of negatives. her greatest positive is she isn't president joe biden. she's a new face to the democratic ticket, obviously, in the sense of ascending to the top slot, but she's still not

terribly well-known. i would say that, number one, she's going to have to tell her own story, have her own narrative, and i think it's going to be a real race to see if the trump campaign is going to tell her narrative for her, if they're going to define her before she can define herself, which is exactly what president obama did to mitt romney before he could define himself because president obama's numbers were so bad. let's face it. right now one of the biggest negatives that vice president harris has -- although she isn't joe biden -- she has joe biden's record around her neck, whether it be the withdrawal from afghanistan done in a disastrous way, whether it be particularly inflation. i mean, let's face it, the question for a lot of voters isn't what have you done for me lately. the real question is am i better off today than i was four years ago. and you still have 20%

cumulative inflation under biden/harris and wages haven't kept up, and that's going to be kind of a burden for her to bear. >> senator, how does she deal with the immigration story, and then separately, in terms of tacking to the middle or tacking to the left, which way do you think that she goes? >> i think she goes to the middle. i think you'll see that signaling in her selection of vice president, and so that will be interesting. but you know, this race for the nomination isn't over. you don't see a lot of people jumping up and down, but we do hear rumors that people are looking at this, it will ignite and excite the base, i think, and you know, there was going to be these problems whether it's inflation for any democrat who steps on the ballot. the one thing that republican pollster recently told me is that the only thing people really know about her is her laugh. i don't know if that's good or bad, but it is an opportunity for her to redefine herself in the american public, and she's

got a pretty interesting and direct narrative to tell, and so, yeah, there's going to be a lot of discussion about these issues -- >> is there an issue, though, that you think she should create daylight between herself and the current president? >> i don't think you can. i think that you can't be embraced by this president, you can't be the vice president expect to run away from that record. it's like republicans running away from trump. it doesn't work, if they've stood next to him at a campaign ra rally. and then we get help democrats from donald trump. i mean, could he just have said good-bye, joe? i don't like you, but you know, you served the country. we don't think very well, but good luck to you. no, he did not turn the page to a kinder and gentler person, and i think that's hurting him and opening opportunities for people like kamala or whoever the party nomi nominates. >> congressman hensarling, do you think this makes it tougher for former president trump in terms of how he debates her, how

he potentially approaches criticizing her? >> i don't believe so. number one, if you're alluding to the fact that she's obviously a woman, he's debated a woman before, and obviously he managed to win that particular election. i mean, a couple of things i would agree with heidi on, i don't know how vice president escapes or gets any daylight between herself and president biden. and so she's also stuck, obviously, with the border, and on a lot of the polling i've seen, second only to the economy, i.e. inflation, what's happening on our border, the border crisis is the number one issue, and guess who the administration put in charge? vice president harris. again, that is a real albatross around her neck. with respect to president trump? yeah, i'll admit the new trump lasted about 72 hours, and so he has a very, very high floor in

politics, but you know, a allow ceiling, so there is going to be a real race here. but you know, we look at polls, they're an inexact science. what's a little bit more exacting if you look at the vegas betting odds, they are still betting heavily on trump. >> right. senator heitkamp, you mentioned this idea that there are others waiting in the wings that may emerge in the next couple of days. we've heard about joe manchin being one of those potential names. how do you handicap that situation? what are the other names out there that you think are even interesting or would be interested? >> you know, it's hard to tell because there was such a quick kind of endorsement, and then the kind of follow-on, especially for those people who might want to be named vice president who would otherwise maybe consider an open primary if that process had been available to them. and so it's really difficult to say, but you know what? this idea that this is all wrapped up, i'd say it's about 80% there, but you never know what could happen. this is now in the hands of

4,000 delegates coming to chicago in august. and you know, the enthusiasm and the relief and the sufund-raisi for the democratic party, that all signals a rejooufuvenaterej reenergized base. >> we got to run, just name one person, if you could choose her vice president, who would it be, both of you? >> oh, andrew, that's just so tough. i think there's a lot of good choices. i don't know some of them as well as i know like a mark kelly. i think mark kelly would be an interesting choice. >> congressman. >> i think rarely if ever the veep makes a big difference. clearly it's going to be a moderate from one of these swing states, maybe shapiro for pennsylvania. >> arizona could be back in play. >> congressman hensarling, thank you both this morning, appreciate it. all right, when we come

back, we ever going to head to farm bureau just outs-- farnbor just outside of london. dow futures up by 40 points, the s&p futures up by 30 and the nasdaq which had its worst week since the middle of april is up by over 100 points this moinrng. we'll see if technology can hang on. "squawk box" will be right back.

♪ welcome back to "squawk box." the farnborough international air show is underway, and phil lebeau joins us now with a very special guest from there this morning. phil. >> thank you, andrew, frank st. john, coo of lockheed martin joining us here. i know a lot of people say the farnborough international air show is about personal air, there's a military component as well. >> there is. >> before we begin talking about defense orders, i'd love to get your perspective. joe biden not running for

president. 'cause that change the equation in terms of you as a corporation, how you look at what might happen in november? >> phil, one of the hallmarks of our country is a peaceful transition of authority and leadership, and lockheed martin's history is that we have been able to work with administrations as they've transitioned, and our mission is to do what has been consistent through all of those administrations, which is to provide effective deterrence capability, to preserve the very freedoms that allow us to continue this form of government, and so we're going to continue doing that and focus on our mission regardless of the politicalo outcomes. >> with this administration, a big push for them that finally came through was fgetting the okay to transfer f 16s from nato allies to ukraine for the ukraine battle. how does that change the equation for you as a company as you look at nato and supplying nato let's say over the next

several years. >> well, some of the conflicts that have been going on now for the last couple of years have really emphasized the need to have a strong deterrence capability in place, to deter and prevent aggression. the f-16 is a great example of interoperability. we've got 25 countries that have been using that platform for 50 years. we're happy to have ukraine join that family, and we think the f-16 is a small picture of what's happening across nato. in the recent nato conference e we had a lot of conversations about interoperability, about working together across national boundaries to provide the deterrence that's needed on a go-forward basis. >> from here you go to romania where they're greating their first group of pilots trained for the f-16, perfect example of that in terms of the ability to say the f-16 is here, it is here, it is here. >> absolutely. a lot of times we focus on the delivery of the platforms.

just as important is the sustainment tactivity that follows in terms of training, maintenance, and repairs. we're looking forward to participating in that as well as the governments work out how they want to accomplish that. >> you are expected to begin deliveries of the next generation f 35 this quarter or the second half of this year. as that happens, how does that change the outlook over the next several years? >> as you know, the f-35 has the premier multiroll platform over the last decade at least. and last week we started delivering tr-3 configured f 35s. tr-3 is adding a step function of capability in terms of processing, and it is going to be the foundation of what's called a block four modernization program that's going to take the f-35 into the late 2030s and beyond. i'm so proud of our team in fort worth and our industry partners that have got us to this

mile milestone. we've now delivered our 1000th f 35 and we're looking toward to many more to come. >> you and i were talking about the impact of inflation. for you as a defense contractor, do you see that easing at all, or is it in a plateau period here? >> well, one of the things that we've had to deal with over the last couple of years is the flow-through of inflation that begins with raw materials, works through our small and medium businesses and eventually into our production lines. that along with the labor turnover that happened as a result of covid-19 has created a bit of a headwind as we start to build and ramp into new requirements. we're focused on building a stronger industrial base, and we are working to bring on alternate sources and also provide our subject matter experts into the supply chain to deal with those issues. >> the supply chain is not in the system right now for everybody, right? >> it is. it's primarily the thing that is pacing the ramp-up of capabilities, whether it's

munitions, whether it's aircraft. it's the supply chainm. some of our biggest suppliers are prime, and they are gaining some additional growth in our plans by their ability to work through supply chain issues. >> frank st. john, the coo of lockheed martin and a very busy day at the farnborough air show. >> thanks, phil. coming up, vice president harris already seeing a wave of big money donor support following president biden's announcement that he's dropping out of the presidential race. we'll discuss that next. and then, republican senator from oklahoma markwayne mullin is going to join us with his acono yesterday's announcement. we're coming right back. g easie. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy to-use tools make complex trading less complicated. custom scans can help you find new trading opportunities,

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discuss all of the latest. you've been working overtime the last 24 hours. >> wow. >> let's talk money, let's talk money ball. >> crazy times. so since joe biden announced he was dropping out of this race and endorsed the vice president to be the nominee for the democrats, they have raised we're going over $50 million, and that's through small dollar donations primarily. behind the scenes as i've been reporting, there has been this pullback up until this that point from some big money players, fundraisers, people loyal to joe biden because post that debate in june, people just didn't think he should be running, people who raised a lot of money for the democratic party. they held back, didn't dugo and fund-raise. now it seems like from my reporting that many of them are coming home. it's not everybody, but to just put a fine point on this, many of these same people were not going to come back if he was the top of the ticket. >> you said not everybody, who's the not everybody? >> we talked to somebody like stewart bane ham jr., the

chairman of choice hotels. he told me weeks ago he is not going to help biden. he's going to wait until the democrats figure this out, maybe post the convention. he tells me that he's not going to come back right now. >> that's what i was wondering, brian, are there a lot of them holding out to see who the actual candidate is? do they like kamala harris as that potential candidate? >> they are trying to see more of an open process. what does that translate to? they want to see an open convention. they want to see this battle on the floor. right now there is nothing going in that direction. i mean, maybe joe manchin switches parties and does something. it's not clear if he's going to be able to do that. he doesn't have the money, okay? the vice president now controls the president's, you know, campaign war chest of $96 million because she's at the top of the ticket. >> plus now an additional 40 or

50 million. >> correct. let me ask you a different question. last week we were talking about, you know, who might come in to try to beat biden if it's not kamala, and we were saying, you know, if you were a gretchen whitmer, name your person, that you might not want to actually. that you might want to sit this race out because you think this is locked up by former president trump and if you think your best chances are not now, you wait until '28. how does that calculus, if that calculus makes any sense at all, maybe that was wishful thinking by some people, factor into this and also maybe factor into certain people's decisions to become or want to be the vice president on this ticket. >> listen, if you jumped into this thing now, you would have to have a ton of courage, let's put it that way. pa because she not only is getting all this money, she controls it now, but she's seeing all these endorsements. some of the very same people that were being floated as people who could test in a

primary. they're coming back to support the vice president. so the idea that some of these bigger players are going to jump in would be kind of wild. to your point, if they did that, good-bye being her running mate. there's no chance that she would go back around and do this. this is such a fast process. august is the convention. a matter of weeks, so the democrats really are kind of on a time clock to figure this whole thing up. people jumping in and fight -- >> you remember when dukakis was running and he chose benson as his running mate, and benson did not resign his seat in the senate, which spoke volumes about what he thought was going. >> they're going to have to play this whole thing out with the campaign. >> even if they nominated her, even if the democrats nominated her, they're going to give up a position as a governor to be a vice president on a ticket? >> you're right. are they going to step away from their own perch of power in a

state where they're the governor to be a running mate or maybe vice president. i think it's a tossup to see if they'd have interest in that. i do feel as if there are going to be big names, somebody like a josh shapiro. other people from the gubernatorial side where they could bring someone on as a running mate. >> in terms of the money piece, how much -- how much do you think this $95 million pile matters. there's lots of debate about, you know, if a manchin or somebody else comes in, can they somehow get access to it the way bloomberg ultimately donated his money, if you remember, people thought that was like a campaign violation, but then the courts decided that it wasn't. meaning how important is that bounty, that one component on a relative basis to what is a billion dollar plus pac bounty. >> you're right. it's a small portion of a larger political finance efforts that we're seeing with pacs. but it is a ton of money. it does -- it puts her in the

driver's seat of a massive political operation that gives her an advantage with resources. those financial resources can be used to buy ads, to hire more staff, to really just get the message out there of who she is, who the vice president is, and that's critical over the coming days and weeks. she still needs to and weeks. xi still needs to acquire the necessary delegates. raise a ton of money. convincing voters that she should be the one to carry the torch for the democratic party, and beyond. right? that's critical. somebody like manchin doesn't have access to that type of money you won't have the resources to play at that game, at that level, at the rate he has to. >> thank you. and speaking with openai investor and democratic donor. one of the big names and big money spenders in this party. asked by elon musk over the weekend to support trump. we'll ask him about that and so

much me.or he said, "nope." he'll explain why. "squawk box" can coming right back. >> university of maryland global campus isn't just an innovative state school, it's a school for real life, one that values the successes you've already achieved. that's why at umgc, you can earn up to 90 credits toward a bachelor's for prior learning

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interesting notation out of some of the magnificent seven into the russell recently. now that's, first thing off a little. i don't know what the current trade would be. politically. uncertainty. treasuries down 422 on the u.s. ten year. and following yesterday's announcement by president biden, several republicans called on him to step down immediately from office. our next guest tweeted, if joe biden is unfoyt run for re-election he is unfit to carry out his term. 25th amendment. joining us now is senator markwayne mullin. seen conjecture about that, but it looks unlikelyunlikely. he's going to stick it out. the whole process gets muddled if we were to see a vice president harris immediately ascend to the presidency. wouldn't it, senator? >> it would definitely get muddled. the question that needs to be

asked, is the democrats saying joe biden is unfit to run for office, or are the democrats saying he's not able to win? because if they're saying he's not able to win, then they're saying the democracy they're trying to defend doesn't really matter because there are 14 million democrats that voted for him in a primary but saying he's unfit to run for office, then they, the democrats, need to be looking at the 25th amendment and be honest with the american people. if he's unfit to run for office then he's unfit to serve while in office and why we have a vp and a 25th amendment. it's either/or. they can't have both. >> they'll be able to, i think -- there will be what is purported to be an open process at the convention. i can imagine. are you troubled that we heard about it through a tweet and a letter and -- i mean, lbj i think spoke for 40 minutes and told the nation what was

happening and very heartfelt and everything else. i don't know what that was yesterday, really. >> well, i have a feeling this is just kind of the same part that we've seen from this administration. we saw it during his campaign and during his presidency. it's not a surprise he did this through a letter stepping out. i don't know how you can really address the nation in this. if he had covid, listen, i give the guy a little bit, if he has covid, really sick. it may not be, he may not be ale to actually address the nation like he needs to, but the bubbling, point, boiling point inside the democratic party is so heavy he needed to do something because of uncertainty. the letter is not surprising to me. what is surprising to me is how quick the democrats turned on biden. that's what really is surprising to me. it's actually kind of sad, because they had sold it to the american people he was fine. they sold it to the american people for the last three and a half years he was the best

leader they've ever had. after one debate, my goodness. they change quickly when they started seeing the numbers, couldn't beat donald trump and all of a sudden worried about his health. i think all of us probably saw this coming. joe, i was saying last year that it was a 50/50 chance he would actually be on the ticket. i didn't think they would actually kick him out this way. i thought they would allow him to make his decision himself. but it kind of reminds you of the stories you hear about nixon. about the republican old bulls going to the white house saying either you resign or we'll impeach or convict you. kind of the same thing. seems to me circled the wagons around him saying either you step out or we're pulling support from you. it even worries you more, though, if they actually go into the convention and have an open convention, because you really don't know what's going to happen. keep in mind, it wasn't that long ago that bernie sanders almost took over the convention. you can see. if they don't have a nominee

picked by the time they go to the convention, no telling who's going to come out. >> senator, do you think our -- enemies are watching closely? and is this a dangerous time, in your view? others say that, our foreign policy, it's -- for the last six months has been, even longer, it's been conducted sort of by committee. and that won't change now. he'll have the same -- whomever is sort of behind the scenes. we've seen many times he said i've got to go. told i can't answer anymore -- seen that again and again. the question asked, who's really running things? does it matter? are we in danger? are these dangerous times with the president in the condition he's in right now, running the country? >> i don't know if it would be as much as a concern as it actually is more of a plus. as our adversaries watch this, one thing we say is risk versus

reward. you want to mitigate the risk versus reward. way to mitigate the risk, have a pretty common outcome of knowing what the circumstances are going to be. so if you have certainty, because you know what the leader's behavior will be or you know what their reaction's going to be, if you can judge the reaction, you can judge what your second move's going to be. with the uncertainty going on in the white house, with joe biden stepping down from running for office, i think our adversaries are thinking, hold on. now who's going to really be pulling the strings? who's going to make the decisions? is this going to divert now back to the pentagon? the pentagon will have more flexible. then more military people making decisions. going to go to secretary blinken? there's really more uncertainty with adversaries. i think it actually holds them at bay. if they knew biden would be there i think we would be in an even worse position, because biden the administrationcurrent

ly operating on, was more an appeasement policy moving forward than a peace through strength. actually better today with adversaries looking on what's happening to america. they see a change happening and don't have time to react. >> were you at the convention, senator? >> yes, i was. >> were you heckling o'brien? >> joe, trump came to me months ago, after president trump and sean's first meeting. need you to two to get along. we really want to bring the teamsters in to the republican party. sit down and talk. i think you might have someone in common. we reached out to each other, sat down, had dinner together and we actually -- we actually buried the hatchet, so to say. he apologized. i apologized. we shook hands and talked after

the convention. it wasn't me heckling. we get along pretty good. >> quick, what do you say about the daylight between perhaps former president trump and j.d. vance on issues around regulation? a lot of folks are trying to understand what a trump administration would do or look like in terms of regulatory, business community, talking about ukraine and how other countries are viewing us. j.d. vance made some very provocative and direct statements. some of which are contradictory to things that the former president has said. >> here's what i know about j.d. first of all, i consider him a friend. we've got to know each other really well the last year and a half. a group, meet on a very regular basis with our families and have a good time. j.d. is a very smart, intelligent guy and able to learn opinion i tell everybody we make decisions based on two

things. our life experiences and the way we're raised. the way you're raised doesn't exchange. your life experience does. his life experience is about to get much different. when he looks at foreign policy he'll make decisions based and briefings he'll start having, reports on his desk. you start to look at things quite different. when you start talking about regulations, starts looking at what's courting the economy, what's actually happening, what trends are taking place, what regulation is costing jobs and holding back industry and innovati innovation, he'll look at it different. j.d. has ability to change his mind and learn. look at his position on trump and where he's at now. he's on the ticket with president trump. i'm very confident on where j.d.'s going to end up and what he's capable of. i'm extremely confident with him as the vp pick. >> senator mullin, thank you. good to have you on today, after the, the developments of the weekend.

thanks. >> thanks for having me on, joe. >> you're welcome. it is 8:00 on the east coast and you are watching "squawk box" right here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. among today's top stories, verizon matching analysts profit expectations for the second quarter. but it did bopost sales light o expectations. stock down now close to 3%. the company ended the quarter with 11.5 million total broadband subscribers. airlines dealing with fallout from friday's global tech outage. delta already canceled at least 550 flights today. that's about 15% of its main line operation. and elon musk tweeting about his robot ambitions. earlier this morning musk said tesla will have what he called genuinely useful humanoid robots in production for internal use next year and hopefully higher production for other companies in 2026. musk has a history of overly

rosy timelines for his projects but it's something the street is watching closely. owner to mike santoli down at the new york stock exchange. mike, what a weekend it has been. the markets are looking up this morning. what's your take on what's happening here? >> yeah. andrew, basicy ally the mask is dialing back a bit. rotation we saw aggressive almost forced in a lot of ways was away from the maybe growth caps into financials cyclicals small caps. basically coming off that a little. that has positive impact to the s&p 500, which indicated up about half percent in the pre-market. from the surface level, just looks like kind of an overdue pullback in the s&p down 3% from the record high. checks back to the level that it reached very end of june. really not that big a deal. under the surface, dramatic. look here at tech relative to regional banks. sort of where there was opposing currents coming together there in terms of the different trades.

of course, the probabilitieses of the election fed into this to a degree. really it's about soft landing, fed rate cuts and leaders declining and large eggards recovering. a rush. a widening out of this at least at the open now. 5% pullback in the nasdaq 100 from its high. seems like thatinitial dip is going to be bought as an opening attempt. look at nvidia. right at the center of that entire trade. kind of pulled back to its 50-day moving average before it sort of sat at the close on friday. looks like it's going to bump from here. actually had the street out there raising price targets pounding the table saying a buying opportunity. see if that dictates the action in nasdaq and s&p today, guys. >> mike, thank you. see where things head. when we come back, a can't-miss interview with venture capital legend vinod khosla calling for an opening democratic convention following joe biden's decision not to run

for a second term at president. a big donor to the democratic party. see where he's giving his money -- or not. and former kansas fed president sesther george joins us. don't go anywhere. "squawk" coming right back, after this.

all right. this friday we are set to get the latest pce reading. the fed's preferred measurement of inflation. that comes a few days before the central bank's next rate decision. joining us right now, former kansas city fed president esther george. esther, thank you very much for joining us this morning. why don't we talk a little overall about the market's expectations for a rate cut? the fed has been saying for some time they anticipate add rate cut in 2024. the market is betting in almost a united front that will come in september. does that sound right to you? >> well, good morning, becky. yeah. i think the combination of the

fed signaling that they've peaked at her rates months ago and continuingto talk about rate cuts has set the market up again for high expectations around a september rate cut. i think i'd be a bit more cautious myself. i do think the fed is beginning to see the progress they've been looking for. we're all listening for the word "confidence" in their remarks to see whether they're getting close there. but i think we still have data to see that will give them the confirmation they're looking for that they can begin that process at rate reductions. >> if the data goes their way and there aren't any big surprises between now and september, would you expect they would cut rates then? >> i would expect that. i think their signal has been a strong one, that that's what they would like to do. that they are anxious to secure what many refer to as a soft landing and so i think at the

earliest possible window, i would expect september would be in focus for them. >> is the core pce the most important data point? >> well, i think the headline, of course, is the target for them, but the core is telling them something about the momentum, about the strength of that inflation, and where it's going directionally. so i do think you'll begin to hear more and more about how core is moving, how broad-based this inflation, disinflation, is for them, and that's where i think the weight is going to be. that number is going to move around, as we all know, but keeping an eye on, really, what is the core driving them is always an important measure. >> do you think fed policy is too restrictive here? >> you know, becky, i have not thought that.

i think you see certainly areas of the economy where that restrictiveness is coming through, and that tends to be in a segment of the consumer that rely heavily on credit card debt, on auto lending, where you've seen those rates really manifest themselves, but, of course, where we would typically expect to see mortgage rates and other things, people have locked in low rates. so it hasn't felt restrictive when you see how low unemployment is. when you see how strong growth has been. i think it's fair to raise the question of, is that policy really restrictive? >> it's kind of a weird situation. it creates -- inequality to a certain extent between the haves and have nots. you have a house, locked in a low mortgage, you're in decent shape. if you don't have a house you are looking for a place to live or to rent or to buy. if you are looking for a new car, if you are looking to pay

off debt, you're in a much trickier situation. >> absolutely. and i think to some extent, this rate environment, as past rate environments have been, can have distributional effects. remember, we went through a long period of time with zero interest rates. as a fed president, i would hear very loudly from those that relied on savings and weren't getting any return then. while those that borrowed were quite happy. of course, that's changed now and you seize though effects coming through particularly on a part of the population that doesn't have the assets to earn from. >> so does the fed care about that? or is that just kind of the way the cookie crumbles? you won't be able to please all constituents all the time? >> they care deeply about it and you see them talk about it. the regional fed presidents hear it in their regions. the truth is, the fed is dealing

with a macro tool, and as you've often heard it described, it is a blunt tool. meaning it can't surgically help one sector and at the same time try to recalibrate demand in another. so you have to always be looking at the macro picture, even as you pay very close attention to the underlying micro elements. >> esther george. i want to thank you for joining us this morning. >> thank you, becky. coming up, much more on the race for the white house after the second shoe finally dropped over the weekend. connecticut governor ned lamont wi jlloin us. stay tuned. you're watching "squawk box" on cnbc. [window slamming] woman: [gasps] [dog barking] ♪ woman: [screams] ♪ [explosion]

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s&p and nasdaq. in fact, coming off their worst week in three months. okay. >> president biden ending his re-election bid endorsing vice president kamala harris in the race against former president trump. eamon javers joins us with the latest out of d.c. good morning. >> yeah. good morning again to you, andrew. kamala harris moving quickly in the hours after president biden's announcement on social media. we're told spending about ten hours yesterday holed up in the vice president's mansion in sweatpants and a sweatshirt dialing democratic insiders making about 100 phone calls yesterday trying to lock up support and then look at this fund-raising number released by the harris campaign this morning. announcing a huge haul here from her staff saying since the president endorsed vice president harris yesterday afternoon, every day americans are given $49. million innation

campaign. trump campaign raised $1 million in the month of june. comparable with that. in just one day. less than 24 hours since that announcement. this is a big fund-raising haul and a fine of momentum now for the harris campaign. what the former president donald trump has been saying on truth social. his social media service. the former president complaining that this is unfair. so we are forced to spend time and money on fighting crooked joe biden. he polls badly after having a terrible debate quits the race and now have to start all over again. shouldn't the republican party be reimbursed for fraud in that everybody around joe including his doctors and fake news media knew he was not capable of running or being president. the former president. certainly lamenting the position his campaign finds itself in having to reorient its campaign. guys, imagine that they're going to dig through all of kamala harris's social media appearances, sound bites, looking for awkward moments,

looking for those bad gaffes and recirculating all of those. kamala harris's poll numbers are a place holder, you can think of them as. people haven't seen her on the national stage. under cover as a vice president in a way you can't be as a presidential nominee. how she rolls out the campaign publicly now that the behind-the-scenes piece may be over will be telling in terms of her ability to challenge former president donald trump this fall, guys. back to you. >> eamon, thank you. more on the top story of the morning. president biden dropping out of that 2024 race for the white house and joining us right now on set is connecticut's governor ned lamont, who is a democrat. thank you very much for being here, governor. >> nice to see you, guys kwha. >> what do you think of the news? >> not a total surprise. a lot conversations especially going back to the debate and i think it's a fresh start and kamala has an opportunity to re-introduce herself to the people of the country and she's going to be a very strong nominee. >> are you supporting her,

throwing your backing behind her right now? >> i do support her. i think she'll be really good. >> why do you they with haven't heard similar merges from former president barack obama, hakeem jeffries and nancy pelosi? >> don't want it to seem top-down from party elders. you saw the ground swell of support for vice president harris. >> and everybody eyes wide open, in the primary, voted for president biden. afterwards at the debate, then it became clear in polls that he couldn't win, then all of those votes no longer mattered. it just is a bad look. if no one knew beforehand, maybe, you know -- or like if someone had a stroke or something. maybe that changed things

fundamentally. everybody knew all along, the democratic party, anybody with the president, going through that primary process. now it doesn't count because he looks like he can't win. that just doesn't look right. >> look, i don't think it's a shock to people. joe biden's 81 years old, and -- >> why pretend you're going to give him the -- >> the last three and a half years, joe, thought he did a hell of a good job and people in the primary process were voting for joe biden and kamala harris and did that on a very strong basis. you know, joe biden was credited for the next four years. guy my age, probably better he step aside. he's a selfless man did the right thing and kamala is head to hit the ground running. >> manchin -- says he's not? >> says he's not going to do it. >> asked if he thought harris was too liberal manchin said, absolutely. do you see an change to the center to this point? >> she was a prosecutor.

putting criminals behind bars and i think she's the vice president to joe biden and has a very -- from my point of view i'm a moderate democrat and support where she's going on this. >> you don't think she's too far left? >> no. i think -- look, i want a more pro-business orientation, but, look, i look at j.d. vance. he thinks head of the ftc is the only person he supported in the biden administration, and he's hardly a free marketer. >> you're not as much of a fan of the ftc's movement at this point? >> i'm a little more of a free market guy. regulate with a light touch. >> do you think that message will be heard? either by vice president harris or whoever else is coming in? >> i can't tell the difference between the two parties in many cases on this opinion i listen to j.d. vance, and you know, donald trump and they are really going hard after business. it was a little surprising to me. but i think kamala harris has the right balance. look, she's been everything from

a prosecutor to an attorney general to a senator and is a vice president. she is has a breadth of experience and confidence she'll be a good president. >> what are the odds, senator, there is an open process at the democratic convention when it comes up? i ask this just because i think people are saying, look. 80% chance she gets this because of everything that's happened in the last 24 hours, not even at this point, but if there is a lot of opposition research drained um and feeling like the trump campaign's already going at it pretty hard, are there other alternatives, do you think? >> if anybody else wants to get in, you better get in really soon. >> right now. >> because i think the kamala express left the station. it's barreling along and i think the -- i think the convention will be a strong affirmation of what she's about. you know, i think having her debate is not a bad thing but i think we're ready to go with --

a. qu >> a question about the vice presidential candidate. an argument people are talking about she should come up with a vice presidential candidate for herself before the convention. does that make any sense to you? meaning that there's such a short window here now for this whole situation. it's a whole different dynamic and that if you want to run you better come out and say, this is who i'm with? >> look, i think it makes some sense, andrew, but everybody take a breath. this has been 24 hours. she got notification, you know, we're all running with biden 24 hours ago and now hanging with harris. you know, calm down. i think sometime in the next two weeks, i think they'll start vetting a vice president. somebody's who a strong complement to her. >> who do you think is the right person? >> look, obviously the battleground governors are sort of at front of the list. for reasons haven't tactical, j.d. pritzker a hell of a campaigning bringing a very different style to the table. >> my question, as a sitting

governor, would you be willing to say, yes, i'll give up my position as a sitting governor and run as a vice presidential candidate on a ticket that is definitely going to have a tough slog ahead? >> i think a lot of people, a lot of governors would be willing to step up and say i'd be proud to be your running mate. >> pritzker has a lot of money. and one's in california, the other in illinois. newsom and whitmer. seems like a tough sell. you'd be better. as far as the way -- >> i like connecticut. people are moving into connecticut. >> in terms of the deficit. >> on a national stage, joe, i think people -- what we know about kamala harris, we're going to learn more about kamala harris in the next two weeks than we've learned in the last 20 years. nobody knows what a vice president is. a warm bucket of spit. now a chance to stand up and say this is what i'm about.

>> running for president. you got to see her on the debate stage. >> vice-presidents a warm bucket of spit. nobody knows who you are. why would anybody give up a governor job for that? >> governors have higher ambitions and think vice president is not a bad place to be. >> stepping-stone away. >> yeah. depending where you find the job. dick cheney was a very strong-based president. too strong for my point of view. >> a different calculation. if you want to be the president ultimately, are you better off being a vice presidential nominee in a potentially losing scenario, if you believe that that's the way polls show this, and who knows. a lot of things will change for a very long time the next month and a half or two months. ow d or do you wait it out? how much is that part of the calculus? >> that's a calculus. the country's at a crossroad.

donald trump and krrs kamala ha night and day. this is the time to do it. >> thank you for coming in. great to see you. >> you're slumming's what are you doing down here? >> heard you would be here. just got back from germany. way back from kennedy. >> you got it. thank you. >> on the way back. okay. >> had to cross the bridge, really -- coming up, a debate over the future of the american economy and what it could look like under the next president. we were planning to talk to donald trump versus joe biden. now it will be trump versus -- well, somebody else. that conversation coming up in a moment. plus, long-time venture capitalist vinod khosla joining us on his call for an open democratic convention. he's a big donor. how much influence will he have over all of this? stay tuned. you're watching "squawk box" and this is cnbc. ars.

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four years. that question's scrambled by president biden's skin to drop out of the race for the white house. joining us, steve moore senior visiting fellow at the heritage foundation and economic advisor to former president trump and co-founder of unleash prosperity, and ernie is director at the yale law school and former chief economist at the white house council of economic advisers under president biden. and the way we said that, steve that it was scrambled by the events over the weekend, would you at least concede it was kind of scrambled when president trump picked j.d. vance? what do you think the economic outlook, or program, or policy is under president trump looks now? will they be his or will they be american compass and j.d. vance, which is basically, i don't

know, like socialism 2.0, the way look at it almost. >> great to be with you, joe. thanks for holding this debate. what happened under donald trump and what is happening under joe biden and kamala harris. we just put out a report showing out of the 20 most economic measurements, trump beats biden on 18 of the 20. whether it's poverty rates, real incomes, small business confidence, mortgage interest rates, almost everything has been worse under biden than under trump. the problem for democrats right now, if they do run kamala harris, how does she run away from that biden catastrophic economic record easpecially wit respect foy the policies and the republicans are responsible for this too, but biden came in and really poured kerosene on the

fire. so with respect to j.d. vance, i think the guy's a free marketeer. very solid, conservative voting record in congress and i think that you'll see under trump 2.0, policies that were very similar and successful to what happened in the first term. >> he's not -- you don't think j.d. vance is whispering into president trump's trump we need to go to 28%? what they want to do, they tell me, on the corporate tax rate. >> ironclad guarantee if trump is re-elected, i think he will be, we will be cutting the corporate tax rate not raising it because it was a massive success when we did it. we brought it over $1 trillion of capital from the rest of the world when we cut that corporate tax rate. became a magnate of capital. by the way, biden wants to double the capital gains tax, a catastrophe for investors. >> ernie, you're probably, your

head's going to explode if i don't let you respond to those thing. your response? >> look, you know, i think that we're starting in the american economy from an extraordinary place. the united states has had the number one pandemic recovery in the g7. we've grown almost 9% in gm7. by the way, our inflation has been about middle of the road in the g7. unemployment rate 4.1%. so you know, this economy is in a very strong place, and i really worry that the trump platform would severely damage where we are right now. you're talking about putting a tariff on all imports of 10%, 60% on chinese imports. you know, that means if you're a small business, the cost of your input is about to skyrocket. if you're a middle-class

consumer, your cost of living is about to go up by $2,500 a year. you know, consumers told us loud and clear they hate cost of living increases, and just where we've gotten -- just where we've gotten inflation under control to the point it looks like the fed might mbe at the point to ct rates, donald trump is proposing a program that possibly would go up again. add on top of that other inflationary programs like a possible deportation of immigrants. possible political influence over independents institutions including the federal reserve. it's just a potential catastrophic mix for american business and american consumers. >> ernie, first time around in the trump administration, those worst-case scenarios didn't happen and there were tariffs actually put on and until the pandemic pretty good numbers. then a lot of the tariffs that you're talking about, president biden didn't even -- he left

them on anyway. so i don't -- i don't know if it would be different this time around. you think it would be? >> so we're talking about a difference of degrees here. right? so the trump tariffs, which president biden rejiggered into sort of nearly tailored national security tariffs on things like electric vehicles, right? narrow tariffs on about $18 billion worth of imports coming in. what trump is now proposing is a broad tariff on $3 trillion worth of imports. 60% on chinese imports. so, you know, weighted average would be even more on top of that, which is just orders of magnitude even more in terms of impact. we haven't seen that since the mercantilist era of the 19th century in this country. >> and back to your response.

doubling capital gains tax raising the corporate tax -- you don't think any of that would be a negative for economic growth? >> so let me say two thing. it's first of all, i think emphasizing that vice president harris is now the presidential candidate. she has to speak about what her agenda is as a presidential candidate and i assume she will in the coming weeks and months. i don't want to speak for where presidential candidate harris is. i think that taxing unrealized gains is just in terms of first principle economics just a much better conversation to have than tariffs, right? there is an actual economic distortion there. you know, versus tariffs. i'm open to a conversation about where that rate should be. open to a broader conversation about investment incentives. i think that people of good faith could have a very productive conversation about

that. but much rather have that conversation than a conversation that starts from the premise of, 10% broad tariffs and 60% tariffs on chinese imports. >> steve, sounds like both sides kind of say, yeah, yeah. i know we said that, but we don't -- we're not going to -- they don't really mean it. you don't think -- is trump serious about those tariffs? do you think that would actually happen? >> first of all it is ironic that joe biden's only been out of the race one day and now all of the democrats are running as fast as they can away from his agenda. kamala harris was his vice president. these two are basically joined at the hip. look, i just finished writing a book called "the trump economic miracle." the last chapter, joe, i just finished last night, was going through all of these crazy kind of horror claims about what would happen if donald trump was elected president. i mean, the "washington post" said he will cause a global

economic catastrophe, the stock market collapse, investors fall off a cliff. all of these claims and of course had just the opposite. one of the greatest economic recoveries of american history. by the way, the stock market, adjust for inflation, most people watching your show are investors, did much better. nasdaq, s&p 500 an dow jones industrial did significantly better and the other point is, this idea trump will cause inflation? let's be clear here. when trump left the white house, the flation rate you know was 1.5%. 18 months later joe biden comes in and 18 months into his presidency he sends the inflation rate to 9.1%. the worst record in 40 years and ernie is saying that trump is more likely to cause inflation than biden? that doesn't make any sense. i said before, please, go to unleash prosperity dotcom. look at the record of trump versus biden and kamala harris

side-by-side. you'll see on almost hmeasuremet trump was a better president when it came to the economy. the average gained reincome under trump and the average family lost $2,000 in adjusted inflation under biden. it's not even a contest. >> ernie, got to, final word. >> if i may. >> final word, yep. >> if i can start first of all, inflation was a, was a global phenomenon across all g7 countries that went up everywhere including all of the other countries in the world where joe biden was not president. >> because you spent -- because you spent trillions of dollars we didn't have. >> it's because of global supply chain disruptions that were part of the pandemic. second thing i would say is that real wages for production and unsup visery recordsnot just above pre-pandemic level back to

pre-pandemic trend, which means above than when donald trump left office as well. last thing i would say, look, we're not talking -- we're not talking about donald trump returning to the policies that he had as president. we're talking about donald trump version 2.0, which is going above and beyond what he did at president. he did not enact a 10% broad tariff as president. he's proposing going above and beyond what he did. he did not propose -- he tried to exert political influence as president. we are worried we would go above and beyond that in a second term now. those things bother me and worry me in terms of ruining the extraordinary american economy we have right now. >> ernie, thanks. former chief economist under, at the white house council of economic advisers under president biden. steve moore economic advisor of president trump. if you couldn't figure who was who after that.

thank you both. >> thank you, joe. >> okay. up next, venture capitalist vin od khosla joins us like. he wants an open democratic convention now that president biden has dropped out of the race for the white house. and don't miss crypto investors mike novogratz. he will join us tomorrow morning. he was pushing hard for a replacement on the democratic ticket. we'll see what he thinks, now that he's getting it. "squawk box" will be right back. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions and round the clock partnership from comcast business. powering more businesses than anyone. powering possibilities. knock, knock. #1 broker here for the #1 hit maker. thanks for swingin' by, carl.

no problem. so, what are all of those for? ah, this one lets me adjust the bass. add more guitar. maybe some drums. wow, so many choices. yeah. like schwab. i can get full-service wealth management, advice, invest on my own, and trade on thinkorswim. you know carl is the only frontman you need... oh i gotta take this carl, it's schwab. ♪ schwaaaab! ♪ have a choice in how you invest with schwab.

welcome back to "squawk box." after president biden announced he was dropping out of the 2024 race for the white house our next guest took to x calling for an open convention saying the country now has a "unique opportunity for a better moderate path" and also got into it with elon musk. we'll get to on all of it with our next guest joining us first on cnbc investor of khosla ventures, founder, and somebody donated for a long, long time to the democratic party.

vinod, nice to see you this morning. lay out your case in terms of just, before we get into the elon of it, how you're thinking what an open convention would be and would who even emerge to be in such a convention? >> you are correct. your statement there. i'm an independent who's contributed to democrats on climate issues but also republicans including john mccain and others in the past. i do think we should have a process, because we didn't have a democratic primary. so it's important we have a process. i'd love to see many more people. joe manchin wants to run, great. i prefer climate candidates. but i do think we vo, the process is more important than a coronation to get more support broadly. it will even be better for kamala. i believe kamala can beat trump,

but i think it's pretty important, the process is important. >> what do you think of her? >> i have spent a lot of time with her in most of the policies we've seen in the past four years, but biden's policies, you know, effectively the vice president doesn't have a huge role in policy. i think she's a tough prosecutor. so she will be tougher than biden. but we have to see what happens. >> is there -- >> watching the previous debate, it's clear democratic presidents have done better than republican presidents on the economy in the past, but despite the narrative, i do think an independent middle class is what this country needs more than anything else. >> in terms of a potential running mate for her, is there somebody you would like to see join that ticket? if that ultimately is the ticket?

>> i don't have a preference yet. i haven't seen the slate of candidates she's considering. i was more focused, and this was before yesterday. as things were breaking, i'm very much, and still am, in favor of an open convention. >> but part of the issue is there may not be an open convention, partially because she's been anointed potentially and partially, there's a question mark as to, if you were a candidate or somebody that you thought could be a nominee. i'm thinking of governor whitmer or others, maybe you think to yourself, you know what? i want to try this in '28. i don't want to try this now. >> clearly, there's political calculus going on. i think the only candidate running, i would be comfortable with that, bougecause i do thin she has a good chance of beating

trump. and beating trump is more important than winning the presidency. >> explain that. elon musk took to twitter and said, come on, vinod. trump/vance, let's, lfg, exclamation point, exclamation point and you said hard to support someone with no me to support someone who has no values, lies, cheats, rapes, hates immigrants like me. do you want a president who will set back climate by a decade in his first year? do you want his example for your kids as values?" elon went back to you and said, "he doesn't hate you. in fact, i think he likes you. meet him and find out for yourself." would you like to have a meeting with former president trump? >> i've no interest in meeting him. i have made up my mind, so occasionally you do make up your mind. i think his supporting january 6th, an insurrection, trying to violate the democratic process,

trying to support trump, the 2025 agenda, those are very, very dangerous things. institutions are more important than the economy the next four years, and then the economy and climate are two really critical issues, but frankly, his values and his support of the insurrection are what completely kills it -- kills him for me, even if he would have the economy do better, which i don't think is true. >> vinod, how do you think about so many of the other peers and colleagues of yours in silicon valley that seem to have switched gears, if you will, being very vocal in favor of former president trump? >> the one group of people, mostly around the paper mafia and crypto, peter thiel and his group, the paypal mafia, are fundamentally extreme

libertarians. nothing wrong with that. but crypto is not a thing that you should hang the election on, and frankly, i think trump can be bought to give him enough money, and he supported crypto in exchange. that's not how the process should work. >> vinod, the description -- and i thought it was -- i rarely hear such hyperbolic trump derangement syndrome just verbalized just without any sort of embarrassment at all, but with that said, the other people that -- and maybe you'll say all they care about is tax cuts or enriching themselves, but when you say that all these people, these good people out there, are supporting a rapist, treasonous, insurrectionist, you're either throwing them in the same category as the person they're supporting or you're saying that

you're smarter than them for being able to see that in trump. how do you feel comfortable -- how do you feel comfortable putting people -- some of your peers out there in the same category as a rapist, insurrectionist, traitor? >> what i'm specifically saying is they don't value those characteristics. they prefer deregulated -- less regulation -- >> so, it's all about -- deregulation -- it's all about money, all about furthering their own self-interests in their business? they're willing to completely ignore all this moralizing and judging that you're totally comfortable in doing? >> i think values are important as examples -- >> so, they're wrong? they have no values? >> i think they don't value -- they don't value it enough. they don't value values enough. i do. >> but you do. >> i do value the insurrection.

i value the long-term institutions. >> you must feel very good about yourself. okay. that's fine. >> yeah. you can engage in hyperbole as much as you like. i just happen to disagree that we should elect a person like that. >> right. as you've stated. okay. just a lot of people that do disagree with you, and i just don't think they're all bad people or deplorables. >> i don't think they are all bad people, so let me be clear. >> they're either bad or stupid. >> no. they can value values less than they value less regulation. that's what they're saying. >> okay. >> vinod, in terms of what comes next, and also, i'm curious about how you think about using our own pocketbook, if you will, to support one of these candidates, there's been a number of folks who effectively went to the sidelines and said, i'm not going to do anything while president biden was running. how quickly do you think that

changes? obviously, we saw kamala harris raise something on the order of $50 million last night, but there's still a whole number of people who haven't come out. we also haven't seen president obama or pelosi or schumer endorse kamala harris. is that a good thing, a bad thing? >> if you want an open convention, like i do, i think it's a good thing. more people having to endorse kamala. i do think kamala can win the open convention, but -- and she can beat trump. but i think the process is as important or more important than anything, and a coronation will never be received well. >> vinod, we got to run -- >> hillary -- hillary clinton are doing old-style politics, which is a shame. >> final quick question for you. do you think, as a venture capitalist, given that we've seen mark on one side, you on the other, peter thiel on the

other, that this is going to change the kind of companies either that you ultimately invest in or that start-ups go to? meaning, do you think there's going to be a political alignment that's going to happen with the various players in silicon valley? >> i don't believe so. i think we will invest in what we invest in, and that's based on technology progress and technology opportunities, and in fact, i think we'll do it ir -- unrelated to the tax rates or regulation. i do think regular -- less regulation helps, so i'm a fan of that, but in some areas, like climate, regulation is a really good thing. >> all right. appreciate it. vinod, thank you for waking up early, for talking us through your perspective on all of this. thank you. >> thank you. when we come back, a quick final check on the markets. we're coming right back right after this. ance? yeah, it didn't cover everything when i got hurt.

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strengthening through the course of the morning. treasury prices -- actually, let's look at treasury yields. the yield on the ten-year is at 4.21%. we've got a lot of earnings this week, also big data points, including core cpe. that does it for us today. we'll see you tomorrow. right now, it's time for "squawk on the street." ♪ good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer at post nine of the new york stock exchange. david faber has the morning off. the market is taking in stride the president passing on the nomination. we'll get our first look at q2 gdp. pce on friday. our road map begins with this political history, the president withdrawing from the race, throwing his support behind the vice president, kamala harris. futures are ticking higher. s&p is eyeing some gains